Finance Minister Announces Reduction in Small Business Tax
NOTE: A social media version of this release, with high-res photos, is available at gov.ns.ca/news/smr/2011-03-29-Pre-Budget/ . More photos and video from the event will be added later today, March 29.
The Minister of Finance announced that in the upcoming budget the small business tax rate will be cut to four per cent, which is in line with the province's jobsHere plan to grow the economy.
Finance Minister Graham Steele made the announcement while speaking to the Halifax Chamber of Commerce today, March 29, about the upcoming 2011-12 provincial budget.
"This tax rate hadn't changed in almost 20 years, and we have lowered it twice in the last two years," said Mr. Steele. "Entrepreneurs across this province can invest more money in their businesses and be more competitive, which helps boost our economy."
Beginning Jan. 1, 2012, the corporate income tax rate for small business will be reduced by 0.5 per cent, bringing the rate down to four per cent. This, and last year's 0.5 per cent reduction, represent an overall 20 per cent drop from the 2009 small business income tax level of five per cent.
Eligible small businesses can apply this rate on the first $400,000 of taxable income.
"Tax reductions keep revenue in our small businesses, which in turn can be used for investment in technology and people – this helps our productivity which is critical for the economic growth of this province," said Valerie Payn, president of the Halifax Chamber of Commerce.
"With the government having just declared 2011 the Year of the Entrepreneur, lowering the small business tax rate is not only the right thing to do, but it's the right time to do it," said Leanne Hachey, vice-president Atlantic for the Canadian Federation of Independent Business.
Mr. Steele will introduce the government's 2011-12 budget in the House of Assembly on Tuesday, April 5.
To watch a video of Mr. Steele's speech to the Halifax Chamber of Commerce, later today visit www.gov.ns.ca/finance/en/home/budget/chamberspeech.aspx .